APLNG-Armour Energy gas joint venture signs deal with Orica

The APLNG-Armour Energy gas joint venture had signed gas deals with Orica for supply to their Yarwun explosives plant and packaging manufacturer Orora.

State Manufacturing Minister Cameron Dick welcomed the latest supply contracts.

“The Palaszczuk Government’s gas policy isn’t just securing local supply, it is strengthening job security in the manufacturing sector,” he said.

APLNG CEO Warwick King said he looked forward to delivering more gas to the market.

“APLNG is proud to be supporting manufacturing jobs in Australia through the supply of gas to Australian manufacturers, with the earliest of a number of multi-year contracts beginning in 2020,” he said.

“We will be able to develop this block efficiently given its proximity to existing infrastructure.”

The latest two gas deals follow the recent three-year gas deal APLNG-Armour joint venture penned with industrial manufacturer Incitec Pivot, securing 400 jobs at its chemical plant in Brisbane.

Orora’s packaging factory at Rocklea, its primary Queensland manufacturing facility, employs more than 360 Australian manufacturing jobs. Orica has more than 200 permanent employees and contractors at Yarwun.

APLNG-Armour joint venture has this month gained its authority to prospect over the 18 square kilometre area south-west of Chinchilla that will provide the gas. It is near existing gas infrastructure, which will help fast-track gas to Australian manufacturers.

Since 2015 the state government has released more than 39,000 km2 of land for gas exploration, over a fifth of it guaranteeing the gas will be for Australian buyers.

Last year, Queensland supplied around 25 per cent of the gas that flowed to the east coast domestic market.

A Santos/Shell joint venture and Bridgeport Energy were given the green light to explore for gas in the state’s south-west earlier this month.